The Ministry of National Development (MND) on Mar 5 unveiled some of its ambitious initiatives to boost home ownership in Singapore, including the plan to launch a new housing estate in Yishun and measures to provide additional support to help young couples settle down sooner. The Ministry is also studying the possibility of a residential neighbourhood at art and lifestyle enclave Gillman Barracks.
National Development Minister Desmond Lee announced these plans in Parliament as he laid out his ministry’s spending plans for the year.
Here are five things you need to know about government’s efforts to provide affordable and accessible housing for Singaporeans:
#1 Potential residential development at Gillman Barracks
The government is studying transforming Gillman Barracks – an arts and lifestyle enclave at the Southern end of Alexandra Road – into a residential neighbourhood.
Mr Lee said in Parliament that the neighborhood could comprise private and public housing, in addition to public spaces and amenities to meet demand for homes closer to the city centre.
“Besides providing more opportunities for Singaporeans to live closer to the city centre, the new residential neighbourhood can build on the character and charm of the former colonial buildings.”
Environmental and heritage studies will begin in the second quarter of this year and could complete by mid-2026.
Mr Lee noted that findings from the studies would allow authorities to “plan sensitively” for the site’s development.
Existing tenants, whose leases will gradually expire by 2030, can remain on site until their leases end. They include art galleries and food and beverage outlets, the authorities said.
#2 About 10,000 homes will be built in Yishun
About 10,000 homes will be built in the new Yishun estate of Chencharu, situated near Khatib MRT station, Mr Lee announced.
At least 80 per cent of these will be public flats, Mr Lee noted, with the first Build-to-Order (BTO) project of 1,200 units to be launched in June. New recreational, community and commercial facilities will be built in the area. Other projects in the area will be progressively launched in the coming years.
#3 Young couples will pay lower initial downpayment for BTO flats
From June, young couples eligible for the deferred income assessment offered by the Housing and Development Board (HDB) will need to pay an initial down payment of just 2.5 per cent of the flat’s purchase price, Mr Lee said.
This change, meant to ease the financial burden for young couples, enhances the staggered downpayment scheme (SDS). It will take effect from the next Build-to-Order sales launch in June, Mr Lee added.
The change applies to both HDB housing loans and loans from financial institutions. For those taking HDB loans, the down payment decreases from 5 per cent to 2.5 per cent. For those with bank loans, the down payment drops from 10 per cent to 2.5 per cent.
He said: “These couples will pay the balance downpayment at key collection, when they are in a better position to do so… For couples who are ready to purchase a flat and have been saving up to afford the downpayment, we hope that this enhancement will help you to settle down earlier and start your families earlier.”
Since 2018, over 3,700 couples have used the deferred income assessment, supported by the SDS, to reduce their initial costs and start owning homes earlier.
#4 $300 a month in rental vouchers for families awaiting BTO flats
Families who qualify for the Parenthood Provisional Housing Scheme (PPHS) will get further support in the form of temporary rental vouchers worth $300 a month to offset rent for an HDB flat or bedroom on the open market.
The vouchers will be offered on a reimbursement basis for one year starting July.
Mr Lee said: “The $300 quantum was carefully calibrated to provide some relief to eligible families, while mitigating the potential inflationary impact on the rental market for others.”
The government will monitor the impact of the voucher on the rental market closely.
#5 Government is developing plans for the voluntary early redevelopment scheme
In response to questions from Chong Kee Hiong (Bishan-Toa Payoh GRC) and Workers Party MP Jamus Lim questions about the Voluntary Early Redevelopment Scheme (VERS), Mr Lee said the government is developing plans for VERS and will provide more details in due course.
“It is a big, complex task. It involves re-planning our ageing HDB towns. In doing so, we have to take care of the current generation’s housing needs even as we cater for the needs of future generations.”
He explained that the government must carefully redevelop older parts of the towns while minimising disamenities to residents in the newer areas. Some residents will need to relocate. Officials must work out the scheme’s mechanics, processes, and package, as well as ensure enough replacement homes for those affected.
Mr Lee stressed that the Government would continue to work with Singaporeans to build an inclusive, sustainable, and vibrant home for the generations to come.
“This is the Government’s commitment to you. We have taken care of Singaporeans’ housing needs for the past 60 years. It is a work in progress. We will continue to do so for the next 60 years and beyond.”
Source of feature image: The Straits Times © Singapore Press Holdings Limited. Reproduced with permission
